2022 has been a poor year for crypto and ETC has not escaped various downturns. Currently, there are more than 100 million Ether in circulation -- with more being created each day. Ethereums capacity to serve as a platform for other technologies and services is one reason some investors are upbeat about its future. Thus, in 2023the safety of buying, selling, and storing Ethereum falls on the user. Foreign investors and people around the world wont need to run through the bureaucracy of foreign nations system in order to own a home or artwork in another country. Tesla Inc. and MicroStrategy Inc . There are plans to indirectly lower prices through higher transaction throughput, but that will require implementing unproven technology that isnt yet available. In other words, ETH has outperformed by almost 3 times, just since the beginning of the year. Comparative assessments and other editorial opinions are those of U.S. News Uncertainty, even about government regulation, leads to a murkier investment environment. Thinking of Buying Solana? I would simply say -- diversify: Buy both. It passed a major hurdle in September 2021, switching from the energy-intensive proof-of-work system to the more sustainable. You should consider buying more when the market is still recovering from its low spot. So, what are some more reasons to invest in Ethereum? . is a plus for Ethereum owners who plan to have it long term. Cryptocurrency is not a legal tender and is subject to market risks. As a result, risky investments should make up just one part of your. Ethereum is the blockchain technology behind Ether. So, here are the 2reasons why now might be a good time to buy Ethereum and why might ETH be a good investment: Ethereum has faced many criticisms: slow network, power hungry mining, scalability. Dont mistake Ethereums name recognition for stability or growth guarantees. Ltd. Crypto products and NFTs are unregulated and can be highly risky. CoinCodex gave a short-term ethereum crypto price prediction for 2023 that estimated ETH could fall to $1,594.18 by 27 February before continuing to drop to $1,399.99 by 25 March. Fascinating new projects are being built on Ethereum: microgrids, charging stations for electric vehicles, crypto collectibles, home mortgages, health care records, and many more. Contrast that with Apple Inc. (ticker: AAPL), the archetype of a fantastic stock and one of the best-performing equities of all time. Right now, Bitcoin is the most popular and most widely accepted cryptocurrency. With S&P 500 companies alone sitting on trillions of dollars in cash and short-term investments, the growing acceptance of holding Bitcoin on balance sheets has potential to be a massive catalyst for BTC. The cost to use Ethereums network is based on supply and demand if the network is busy, youll pay more. Risky investments such as cryptocurrency can affect an investors total portfolio. Fundstrat Global Advisors analyst David Grider ether price prediction is that the altcoin could reach $10,500 in the long term. (Getty Images). Both Bitcoin and Ethereum use blockchain distributed ledger technology. Both have the potential to perform well over time as the world continues its shift to digital and cryptocurrency's acceptance grows. The implication here is pretty clear. But is it time to buy? So how do we make money? The math behind Bitcoin's epic rise from its inception is obviously even more remarkable. BTC still uses PoW, but Ethereum's long-awaited Merge moved the network to a proof-of-stake, or PoS, mechanism. In either case, it's not 2009 anymore: Both currencies have sprinted past the proof-of-concept phase and it's now time for risk-tolerant investors who haven't considered this asset class in the past to start taking both BTC and ETH seriously. Yes, investing in Ethereum is worth considering. However, several reasons are attributed to the recent surge above the $1,600 and $1,700 levels. Ethereum classic reached $76.94 on 15 August 2021, its highest level since the fall from May's highs while, on 6 September, it reached a periodic high of $77.07. The argument is that there's really no utility to Bitcoin other than being a store of value. Kurt has a B.A. Bitcoin still has a lot of ground to cover though to achieve its all-time high of $64,000 in November 2021 and $47,062.15 in March 2022. Then, when youre ready, go swimming! Buy Ethereum Instead. 1125 N. Charles St, Baltimore, MD 21201. Before you invest in this cryptocurrency, make sure you've done your research and know what you're getting into. If youre in the game to try and make some money, then youre looking for the one that will make you money. Cryptocurrency market predictions are speculative and any investment made shall be at the sole cost and risk of the readers. Since then, Ethereum has improved its smart contract code and worked on security - and this is why no security issue happened ever since. Conclusion: Is Ethereum A Good Investment? Ethereum has been particularly popular with decentralized finance applications. The rate of new BTC creation also gets smaller over time through a process known as Bitcoin halving, which cuts the pace of bitcoin creation in half every 210,000 transactions. Before that he was a legislative editor for the Colorado General Assembly. This will give you a more balanced perspective. One area where ETH definitely loses out to BTC, for the time being at least, is transaction fees. Both have the potential to perform well over time as the world continues its shift to digital and cryptocurrency's acceptance grows. Ethereum is also okay at being a payment system too, but it does not have the brand awareness and immutability of Bitcoin -- plus Bitcoin is truly scarce since its capped at 21 million coins -- while Ethereum is uncapped. After Phases 0 and 1, which will take place in 2020 and 2021, respectively, the Ethereum team is already hashing out what Phase 2 will entail, and how long it will take to reach it. Bitcoins supply will be limited to 21 million Bitcoin; its scarce -- much like gold. Despite ETH being down by nearly 66 percent from its all-time high, it has gained about 84 percent from its lowest cycle in the past seven months. This particular crypto crash isn't the first time Ethereum has experienced dramatic losses, either. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. Dont leave your crypto assets on exchange platforms. On the other hand, there were issues such as the conflict between Russia and Ukraine and the uncertainty caused by the pandemic. Now the price is better reflecting the value and use of Ethereum. His passion and genius are committed to improving Ethereum no matter what. More than 10,000 vendors offer rewards via Lolli, including companies like Nike Inc. (NKE), Walmart Inc. (WMT), Best Buy Co. Inc. (BBY), McDonald's Inc. (MCD) and Dunkin' Donuts. Which is the better buy now? Best Parent Student Loans: Parent PLUS and Private. From an investor perspective, it just kind of. With Bitcoin's surge in early 2023, the "crypto winter" began to thaw. It works like this: A user can commit Ethereum they already own in exchange for the chance to approve a new block of transactions, earning a reward if they perform this task well and putting their stake at risk if they dont. Government regulators dont always agree about crypto or how to treat it. Our estimates are based on past market performance, and past performance is not a guarantee of future performance. What are the differences between Bitcoin and Ethereum. Keep reading to see three reasons why Ethereum will outperform Bitcoin again in 2022. 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The Winklevoss twins, the famous Harvard alumni who claim Mark Zuckerberg stole the idea for Facebook now Meta Platforms Inc. (META) from them, famously tried to start a bitcoin ETF, but they were rebuffed by the Securities and Exchange Commission. The current CoinMarketCap ranking is #238, with a live market cap of $133,535,311. Storing ETH and other crypto carries risks. 7 Penny Stocks Poised for Explosive Growth in 2023, Ethereum Is a Much Better Long-Term Crypto Investment Than Bitcoin. Moreover, it is likely to continue to do so. Since the beginning of the year, Ethereum's price has soared by 435%. Is Ethereum a good investment? Unlike Bitcoin, which is pretty much like cash for the Internet, according to Bitcoin.org, Ethereum has grander ambitions. There are plans to indirectly lower prices through higher transaction throughput, but that will require implementing unproven technology that isnt yet available. But it may not be the best store of value, because Ethereum does not have a maximum supply. The altcoin hit its all-time high in October 2021 at the $4,899 level. In addition, lawmakers are still figuring out how to regulate the crypto market. Article printed from InvestorPlace Media, https://investorplace.com/2021/04/ethereum-will-catch-up-to-bitcoin-within-the-next-six-years-if-past-performance-continues/. Heres a quick rundown of some of the biggest considerations regarding the investment outlook for each cryptocurrency. Ethereum's widespread utility could benefit Ether as well. Ethereum is still a high-risk cryptocurrency, and it's not the right choice for everyone. Facebook, Twitter, Youtube, Instagram, all of these companies reserve the right to delete, modify, or hide content. Vitalik Buterin, Ethereum CEO, is a leader unlike any other. But will investors keep edging back in? Ethereum price prediction in 2021 and beyond Ether surging to a new all-time high has caught many cryptocurrency investors' attention. Ether (ETH), the native token on the blockchain network Ethereum and the second-largest cryptocurrency by market cap, is a risky and volatile investment. It made many people immediately jumped on the wagon to enjoy the deserving fruits of digital currency. Ethereum 2.0 is an updated version of the blockchain that's set to roll out later this year or early next year, and it claims to use 99.95% less energy than the current technology. It's also experienced explosive growth, with its price increasing by more than 1,000% over the past 12 months. Health care stocks dominate this year's biggest stock market gainers. Will Be Even Bigger Than Your Wildest Expectation, 7 Over-$100 Stocks That Are Worth Every Penny, Louis Navellier and the InvestorPlace Research Staff, 5 Penny Cryptos With the Most Potential for Growth. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. So far, none of the so-called Ethereum killers have been capable of demonstrating their prowess. You can easily trade Ethereum for cash or. The scoring formula for online brokers and robo-advisors takes into account over 15 factors, including account fees and minimums, investment choices, customer support and mobile app capabilities. Is Ethereum a good investment or is it too late? 2021 is arguably a great year for all crypto enthusiasts as the price of most cryptocurrencies increased incredibly at the opening of the year. He lives in Detroit. All these negatives are true. This uses a proof-of-stake system to validate blockchain transactions. Here's what the experts suggest. And technologies led by intelligent, focused people are often a good bet. Over the years, weve experienced countless issues. While there are currently plans in place to increase scalability and reduce gas fees, as of 2023 the costs can still be prohibitive. quotes delayed at least 15 minutes, all others at least 20 minutes. This could actually be a good thing for investors, however, because a smaller supply of Ether could make it more valuable and drive up its price. The table on the right shows the result of this trajectory. Ethereum in 2020 is an excellent investment, even among the global crisis. The cryptocurrency is supported by most major crypto exchanges like Coinbase and Binance. When more people hold Ethereum for a more extended period, it suggests that they believe in its long-term value and potential. In other words, as people can no longer easily afford one ETH, as they cant easily do now with Bitcoin, its price gains could slow. The number of deep-pocket investors or the so-called "whales" purchasing the Ethereum cryptocurrency has increased in recent months. Perhaps fittingly, the site's technical analysis for ether was bearish, with 15 indicators sending out bullish signals and 14 making bearish ones. The last Bitcoin halving was in May 2020; at the current pace, the next halving will be sometime in 2024. On the one hand, the US Federal Reserve increased interest rates aggressively to address inflation. But proving it is another thing. The last Bitcoin will be mined in the year 2140. The last thing you want to do is put your life savings behind an investment as high-risk as cryptocurrency. This was a new high for an artwork that exists only digitally. Bitcoin was the first cryptocurrency that CME Group Inc. (CME) offered futures contracts on in late 2017, allowing investors to wager on prices at specific dates in the future. All Rights Reserved. Ether (ETH), the native token on the blockchain network Ethereum and the second-largest cryptocurrency by market cap, is a risky and volatile investment. While Bitcoin has a finite supply, Ethereum possesses vast utility and is poised to undergo numerous upgrades, resulting in exceptional scalability and applications soon. While crypto prices have plummeted over the past few weeks, that doesn't necessarily mean it's a bad time to buy. Her areas of expertise include research and strategy. But is Ethereum a good investment only because it innovates? Ethereum Merge and Everything in Between. In November 2021, the price of Ether jumped to an all-time high of over US$4,800. Like any good punk or hip hop show, this year's Colorado event for coders will feature events that will "scare away normies," CoinDesk Chief Insights Columnist David Z. Morris writes. Buy These 2 Stocks in 2023 and Hold for the Next Decade, Warren Buffett's Latest $2.9 Billion Buy Brings His Total Investment in This Stock to $66 Billion in 4 Years, 2 Stocks That Are About to Make Their Shareholders Richer, Join Over Half a Million Premium Members And Get More In-Depth Stock Guidance and Research, Copyright, Trademark and Patent Information. All financial products, shopping products and services are presented without warranty. Our partners compensate us. Pre-qualified offers are not binding. Censorship is a real issue in the modern world. Invest better with The Motley Fool. If Ether is required for applications on the Ethereum blockchain, Ethereum's success could give Ether a competitive advantage over Bitcoin and other cryptocurrencies. First, it's important to distinguish the difference between Ethereum and Ether. Historically, this has resulted in periods of frustratingly high prices, exceeding $190 at one point.